thanks for being with me tonight. have a great night, everybody. see you tomorrow. thanks for watching. follow me on twitter and google plus. stay here on cnbc because "fast money" begins right now. four more years for president obama but the markets sell off. will gridlock in congress finally kill the rally? >> this country is deficient in common sense. at some point this morning, the speaker of the house, the president should walk into a room and say the fiscal cliff that everyone's worried about, we are gonna get it done, walk out of the room, if they did that the s & p is unchanged on the day. >> so will the guys in d.c. play nice? >> because the american people expect us to find common ground, we are willing to accept some additional revenues via tax reform. >> investors aren't convinced. even apple seems to be losing its mojo. >> i'm really struck by this miniipad thing, as if that's any kind of a product innovation.

once you start just changing the size of your products, i really think you're not exactly info vagt. wonder if you will start coming out with the tutti-frutti miniipad, it comes out in different colors. >> from ipads, to elections to europe, we are trading it all. this is "fast money." live from the nasdaq markets, new york city's time square, i'm melissa lee. here are tonight's top three trades. we will give you the best protection plays amidst the uncertainty. apple hits a bear market, big names on the street are shot, the name, should you, too? our traders make that call. a changing of the guard in china, find out why a new batch of leaders can have a big impact on global growth and your portfolio. first, today's selloff you can the dow plunging more than 300 points, posting the biggest loss of the year, s & p 500 dropping the most since june. what was behind the slide? can we point to europe to the

president being re-elected -- >> yes. >> i will go down that road. >> all of t all of t. >> but the biggest difference between yesterday and today is that there are no hope today that romney will be president. >> i think that run-up that we saw, if you watch the action in the coal names yesterday, it was based on a romney victory or [ competitive. the reason i know this, they turned on their heels and sold the hell out of them today. >> everything you wanted to remind you of what was wrong two weeks ago or twoment moss ago or even two years ago. again, we started out with europe, industrial production in germany going down hill fest. draghi saying it is a problem, merkel saying the eu needs to get together, riots in greece, the downgrade rumors, the fiscal cliff, this set us up for an s & p, hadn't moved in over a year

into the surprised, you had a microcosm and yesterday a glimmer of hope. >> plus short ties. >> on a day like this, tough take your tie off to react to all the things going on. that's -- >> engelbert humperdinck concert. >> take off my ascot, i was going to wear a red tie. talk about that later. >> tim and stevie nailed it. people say technicals don't work, they stood up extraordinarily well, see what where they traded up to yesterday and subsequently failed, talked about that level for a while. i thought this 1379, 1380 level would be support on the down side we got within i think six or seven s & p points from that think you are in a defined range. it feels awful today and it is. i think we will go lower from here at some point, but until that happen, you trade away the way we are in now. wither in this 1379 range, we will touch and 14.25 on the

upside has been resistant. >> talk about it more later, you have to look at it out of the box p you know that taxes are going up. you're going to be selling stocks, had to be selling stocks today. people rather have 2002 taxes. >> didn't you know that yesterday and the day before? >> didn't know that obama was going to win. that is the difference. now you know he won, now forced to do it, with liquidity, you have to -- liquidity, you have to get out of the names. >> we erased positive catalyst in the mark e don't have the fed reserve, the put dissolving, nobody cares they are around anymore or thinks they can do anything else. no longer any hope there maybe some kind of change. if you look at the fiscal cliff, we are all worried about that, we do know that even if there is a comp prom my you are still going to be seeing fiscal tightening. add in what's going on in europe, add in everything else that's what's wrong with the world and you have a day like today. >> what did you make of the

action, micah? >> first of all, a lot big per volume than we have been seeing on the options. trading 19 1/2 million contracts we have seen in a month. broadly, every single sector there wasn't a single one of them that saw pullish on balance p the subgroups, the only ones that did were mobile telecom and alternative energy. drilling down into the health care sector, backing up what steve was talking become yesterday, seeing the managed care companies trading up, the hospitals down, today that reversed, obviously only point to the election as an indication of where those drivers came from. >> let drill down now one of the sectors hardest hit in the selloff, financials. look at the etf that tracks the financials that finished date lower by 3.3%. yesterday, trying to make the case, trying to make the case that these turns in certain sectors so strong and powerful and intact didn't matter who was

going to be president. the head winds are there bernanke keep interest rates low. down 7% on the day. >> this was part of the presidential election. this trickled down to the congressional seats. liz warren on a warpath and think today frank was going to be set up for more pain and a lot of people felt that a romney victory would eradicate a lot of this, liz warn and now it gets worse this is not good for banks. the banks have been stepping up to the plate and offering dividend growth and banks are worse less today. >> what do you think? >> i agree 100%. again, want stability in bank, told you 100 times were to be, comes in the form of u.s. bank

corps, down 3.5% today, if you want to trade, bank of america helps on the upside, which i don't think we will be seeing a lot of in the foreseeable future. >> banks, like other sectors, live in this very bad place, they see huge gapes this year, people want to lock in the gains at 2012 tax rates and the dividend growth aspect that you mentioned, tim, essentially gone away. financials are like that pharma is like that telecom is like that. all in this category where there was dividend growth, dividend yield and big gains so far this year. >> particularly with the financeal, short xlf, shorted it a couple weeks back, such of a run-up in there too much for net interest margins declining, potential for regulatory issues, for the capital markets, business dying. so you get that and today with the elizabeth warren election that has every not be financial area wondering what is their business going to look like. had ubs to close down their investment banking division,

fixed income area, really seeing this restructuring, not much where is a bank going to make money the next six months or a year. >> end of the road for financials, grasso? >> office afraid of them going into the leeks, but tough to trade them off of politics, everybody thought they were going to get slammed under obama. hitting the wall again, regulation is going to be mountain going forward. take it as a mandate. >> drilling down on more postelection day movers throughout the show. mean time what should you do now to brace your overall portfolio from fiscal cliffoff. neel kashkari join us on the fast line. >> great to be here. sorry i'm not there in person. >> oh, no, put up your picture, neil, the meantime, wondering, this market selloff, all about obama being re-elected? >> two things, i think, number one, the election put a giant magnifying glass on the disfunction in washington and the huge differences between

republicans and democrats and yes, we have known about that for a long time but we have also all been focused on the election, now that the election is behind us, all drilled into how far apart republicans and democrats are. and europe as well flaring back up again and people realizing the european debt crisis realize they are far from over that is caution the selloff today, our expectation is that volatility will be high for the remainder of the year until the fiscal cliff is behind us. maybe by the end of the year, that may take longer and so i think we are being very cautious right now. >> how do you weigh the risk to the downside of selling because of fear of changes in tax policy and the potential upside risk in terms of if a fiscal cliff deal is announced then we should likely see a huge rally to the upside? >> i'm not sure we would see a huge rally unless there's some -- a real grand bargain. our analysis suggests a mini bar gain, really just a deferral, kick the can down the road, most of the fiscal cliff, probably the best we are going to see the next few months.

if these at care the u.s. economy will continue to grow next year, but modestly, maybe 1.5, 2% gdp growth, hard for us to see huge upside the next few months in terms of a market rally if the best case scene nair gee moderate economic growth scenario. it is possible, if he is there a miracle and republican and democrats could come together with a true grand bar gape, we see a big rally, that seems like a true right tail event, very unlikely in the foreseeable future. >> neel it is brian kelly. i know you like stocks over bonds in the long term, but the scenario you just described sounds to me like i want protection, i want to be in the bond market. bonds were up huge today. have you changed your view on stocks over bounds in the long run? >> new york the long run, we think the equity returns are going to be higher than bond returns over the long term, though we do think that they are all going to be lower than what we have been used to over the last several decades n this environment, with this volatility coming back into the market, we think it puts a huge premium on investing in the right names, finding those individual companies with stronger balance sheets, more

cash generation, better position to withstand both lit political risks and global economic risks that we are all focused about, it puts a premium on stock selection in this environment. >> so let's talk about one of those stocks, honda motor is one of your names, it's been an incredible story the last 20 or so years but since marchish, a lousy story. what can you tell the folks the home about hmc? >> we like honda, a long-term hoppeding for ours. we love the fact that a high-quality company, high-quality products, net balance sheet, it is trading at eight times earnings today, around a 3.7% dividend yield. here is what we really love about honda, exposure to emerging markets, exposure to the recovering u.s. auto sector, very little exposure to europe. honda is relatively safe against european sovereign risk that we are all focused on. if you saw last week, there was a big scandal as it related to hyundai motors and their fuel economy standards that they have been putting on their window

stickers. honda is known for having very high-quality car, very fuel efficient. we think honda is going to benefit from some of the brand damage that hyundai is undergoing as consumers move back to honda. and honda has a refresh auto cycle with a new accord and a new civic so we like honda's balance sheet. we like its global positioning. we like its products and its brand. we think it is a great long-term hochltd. >> nah neel, staying global, i know you like oel, emerging markets, outperforming in the last couple of days. stay with this trade? >> yes, we do. the brazilian toll road operate verse come under pressure historically because of regulatory restraints on their returns. we think some of those regulatory pressures are going to be relived, brazilian government needs to attract massive private capital infrastructure into the -- >> bottle next. >> 2014 world cup, 2016 olympics to us, that means the brazilian government wants to make returns and toll roads more attractive. we think them benefit from that. >> the bottom line, we touched a

lot of topics in this conversation, the markets overall, morris together downside at this point between now and the end of the year? >> that's correct a lot more volatility as republicans and democrats -- you know, if coming out of the election if we saw republicans and democrats running together to join hands and say we got a message from the american people, we are going to work together and solve this, i think aid see markets rally. haven't seen any indication of that i think it's been lukewarm, at best, from both sides and that means volatility is here to stay to the beginning of the year. >> thanks for being here. >> thanks for having me. we want to make sure you don't get caught up in the fiscal cliff gridlock. stick around, the playbook for navigating the stand still in d.c. and later, more than 80 american ceos teamed up to take on america's deficit and talking to one of them tonight, the boss of ten nah co-stay tuned.

we are talking about the election and the fiscal cliff but it certainings season too, the chipmaker beating the top and bottom line, upping the forecast for the current quarter and the full year. shipments expected to rise 8 to 14% for the quarter and pushing everything higher, melissa, back to you. >> thanks, courtney. what we are talking about when we talk about stock selection as is opposed to overall markets, qualcomm, big surge today. >> people that wanted to be short apple but didn't have the. >> guts. >> thank you. >> stones. >> going another body part, yeah. >> to do it got short qualcomm. this is what happens. if you look at a chart of qualcomm the last year to 18 months, we have seep big runnups, sub consequent

selloffs, followed by a run-up. i think we are about to get that run-up again t has been a tremendous story. valuations aren't stretched. a tremendous quarter around the guidance fantastic as well. shows you that qualcomm, not an apple-specific story. want to be short apple. >> be short apple. 'cause there are others out there who are. >> a proxy. >> am, by the way, in case you haven't noticed, fell hard today, down about 20% since its all-time high september 21st. tech in i cannily, we call that a bear market. listen to what jeff begun laugh had to say at double hein capital on the halftime earlier about being short stock. >> i actually started shorting apple back in april in between. the stock started to go powerfully vertical and stocks go vertical and get tired and peak out, they go back to the point in which they went vertical. >> really a major component of decline today. we have the comes from ecb president mario drag guy overnight and terrible german

industrial production numbers and then we had, of course, what happened today in the markets, 10:50 saw.al decline and bear market territory. >> apple's falling knife opportunities have been two in the past five years. the last time we had test of the 200 in 2011, but the last time it traded this far through the 200-day moving average takes you back to september of 2008. so people, based upon the momentum this stock pent up, not going to argue there's anything broken about apple a design, former executive talking about some of the flaws, blah, blah, blah. this is about a crowded trade at a time. people are rotating. this started before all the other macroconcerns started in here. i don't know you need to run after that the key levels look to 540. >> technically make the argument apple is showing signs of being a broken stock.

isi's market technician john mendelssohn came out saying the late july lows didn't hold the next stop with the support of the may lows, 528, quite a ways away where we are now, 20% below the all-time highs. he writes the world loves it referring to am stock, the world ounce it but it is late in the day and we have seen this before with ibm and cisco. >> fundamentally, the story is deteriorating little bit, starting to lose a little bit of market share. they have had tremendous growth and actually competition out there. they no longer have a monopoly a lot of people talking about the samsung products a lot of people excited about that. >> what about margins? margins the last time around so dependent on the i phone for sales, 70% basically comes from i phones. so, people, to brian's point, are waiting on a new product. i'm more excited about samsung than apple right now and dare i say, value trap is going to be uttered in this name. >> really? >> sooner rather than later. >> lives in this terrible space, apple has been a gape per, although a huge decliner the past couple of months, a gainer

for the year. people might be looking to lock in profits to pay taxes at the 2012 levels. one of these stocks people are taking off the table at this point. so a whole other set of pressures on t. >> it would be tragic if people -- if they lost money in am given the runs they have seen. this is what -- people will chase, they will continue to buy t not staying is going to -- just, you know, this always is a reset bunt. not saying today's the day but always okay to sort of take a step back and re-evaluate. i have asked this question 1,000 times on the show, ask it again, apple has no recurring revenue stream, revenues based on what they sell. when office kid in 1980, sony was taking over the world and now look. >> itunes recurring. >> you know what, just said they weren't concerned about mar jirns and what do we see the news about intel, driving their own chip, they want to increase margins, either concerned about it or not concerned about it, but there's little cracks that we are starting to see in an awesome stock that's at an awesome run, amazing products.

back to the qualcomm story, check in with jon fortt, managing the conference call. jon, what is the latest? >> i talked to qualcomm ceo paul jacobs a bit ago, also listening to the call, give you a sense about what they are saying about their business overall. their guidance, perceived, positive tone in the guidance not necessarily based on the macroenvironment. their gdp estimates still below what the cop census is out there, that they are not building in much optimism on windows rt. seeing increased demand on emerging markets, move toward smartphones and domestic market for higher-end smartphones. how that affects people's outlong on am. but all based on that, even the fiscal cliff worries, paul jacobs was telling me not so much impacting the way he thinks about his business. he says even in a worst-case scenario, he expects smartphones to continue to do well, they will be healthy too.

>> thanks so much. time for pops and drops are, mothers you might have missed in today's session. kick it off with a drop for agree yum. >> missed badly at a time people were expecting to support them. also talked with customers on potash continue to break down even though the world is in need of potash. >> the stock is interesting, yesterday an interesting move hire, today as well, base on a news story which may or may not have any basis in fact. doesn't matter. with the tight stuff, tight meaning down under 15 level, own best buy for a trade. >> pop for tenet health care up 9%, grasso. >> the stock dip, when everyone thought romney was going to win, october 30th, incredible one. >> ron tober? >> incredible blast.

>> midtoe ber? >> could say rock toe ber? >> i could say rock toe ber. >> said he was going to look for pull backs from the entitlement programs, that's code for obama care. start too see any wind of that the stock will come in. >> morgan stanley down 7%. pete? >> a tough day to be a financial stock. still have a -- called romney's family and, in fact. >> down 3%, mike co-? >> the market was lower, high-end retail hard hit, expectations for higher tax breaks certainly hurting expectations for sales, stores like tiffany. the stock was close to fully valued, now higher as well. if you up the stock, look at calls here. >> a popular for leftovers. a piece of cake from prince

charles and princess diana's wedding set to go to auction next month in beverly hills. at 31 years old, you probably wouldn't want to sink your teeth into this princely paste trip. the item will be sold alongside another dessert fit for a keep, royal cake from prince williams and kate's wedding, expect to be slightly more fresh. >> late on time but the archies, who sang this song, they were created -- actually not people, they are cartoon characters and created -- >> based on ar chill, the comic? >> because the monkees got so enamored with themselves, said, you guys, watch this i will just make up a band and they will be better than you. got to be careful out there, for example don't get too big for your britches. >> u.s. not the only country with a big week for its government. up next to tell you about the changing of the guard in china, if it's not on your radar already, i'll want to stay tuned because it could have big implications for your bottom line. jpmorgan's top china expert is breaking down that trade, right after this. well, if it isn't mr. margin.

mr. margin? don't be modest, bob. you found a better way to pack a bowling ball. that was ups. and who called ups? you did, bob. i just asked a question. it takes a long time to pack a bowling ball. the last guy pitched more ball packers. but you... you consulted ups. you found a better way. that's logistics. that's margin. find out what else ups knows. i'll do that. you're on a roll. that's funny. i wasn't being funny, bob. i know. we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it.

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america may have chosen to

stick with president obama, another global player is facing big changes in its leadership a big shift in china's government are take place tomorrow. the peoples republic bring in a new group of levels. the current company will be the man at the top, taking over the reins from the president. current chinese vice premiere is expected to take over as premer. he would replace wen jiabao. it comes at a crucial moment for china as economic concerns have intensified. china's third quarter gdp fell to 7.4% year-over-year, the lowest rate since early 2009. meantime, the yuan is trading around a 19-year high, important, of course, because if china continues to slow, could see the new regime move to weaken china's currency and enact further stimulus to boost its economy. more on that, bring in jpmorgan's chairman of global markets for china h pleasure to speak with you. >> thank you. >> what are you expecting out of this change of leadership.

does this set the stage for stimulus, too many green chutes to entertain the idea right now of further stimulus? >> we are indeed seeing some green shoots of recovery in the chinese economy after seven quarters of deceleration. it's important to note the chinese economy this year is going to grow much closer to the government's target of 7en 5%, rather than exceeding it in a wide margin. recent months, seeing some recovery in industrial production, in the purchasing manager's index or even in retail seams. however, the recovery not yet growth based, areas of weakness in housing in power generation overall, the economy beginning to find a floor, some signs of recovery. i would say in the new year, in 2013, growth rates will probably rebound. >> given the sort of -- see the green shoots but weaknesses in china's economy, a lot of investorses, it seems to be, they want to sort of overlay a element of psychology in this change of leadership. when the new leaders take

effect, when the new leadership take affect, will they be more inclined to enact stimulus to make sure the economy is on track at the start of their power, of their reigns? >> we doubt any strong sometime lurks the economy actually is on a reasonable footing right now and this year, throughout the deceleration you can the chinese leadership has been acting in a very prudent and nuanced fashion. they are introducing some measures, they are targeted measures to boost income growth to cut taxes, both small and medium-sized enterprises but not really launching a large-scale fiscal stimulus as we saw in 2009, because frankly, china has learned a lesson from 2009 when we had $4 trillion poured into the economy. later on, hyper inflation, we had issues with industrial overcapacity. we also had some bad debt problems. this time around, i think the leadership will be acting in a much more conservative and prudent way. >> jim, it's tim. i think very consistent on that and we don't expect much on the

stimulus front either. what i think has been the one brain cell trade, most people comfortable in this country saying the change in power doesn't mean anything 'cause the same guys are basically going to be in power. over the last couple of weeks, we have started to hear rumblings there could be a more hard-line stance going through the standing committee or politburo, the attack on premer wen, scandals, alleged scandals, things may be changing and stepping forwards as a democratic front. can you speak to that? >> well, you know, i don't think it's fair to say this leadership transition is not an event. it is actually quite significant because we only have this kind of transition once every ten years, so the politburo standing committee will change. there will be seven people, more likely, rather than nine. also, at a provincial level, at a ministerial level, hundreds of senior chinese officials being replaced and new ones will come in. i think the makeup of the leadership means going forward, they have to rule by collective

leadership. this is very different from 20 years ago when china really was ruled by one strong man. so clearly, the chinese leadership at the central committee and the politburo need to reach political consensus as to where they want to take china but one thing that's certain, we do expect some degree of economic policy continuity. there wouldn't be a drastic change in the policy direction. >> jim, thanks for joining us. we appreciate it. >> thanks very much. >> jing us ring of jpmorgan what is the trade, tim you mentioned a one brain cell trade you for a lot of investor, it has been long commodities when it comes to the china story. >> or the fxi, hong coming, a little bit misleading. if you want to take a more broad, multinational approach, i think yum brapt brands has been reval waited in terms of the growth and the last round of numbers, pushed that. if you believe the chinese consumer ego for nike and caterpillar on the industrial side, i still like china mobile. >> if you want to get something in the etf space, look at

taiwan, ewt, very strong twice china, actually getting stronger with the new taiwanese president. they have hon hai industries in the etf, get to play the iphone demand a lot of things in this ewt, the way i'm playing it, that's what i'm long. >> bertha coombs now an update on whole foods. the cop friends call going on now. >> trying to get an impact on san day and the company stays is not able to quantify it. they did see prestocking ahead of the storm, a lot of stores, particularly in the new york area, new jersey area were closed a lot longer than they normally would be because of the power situation. right now, what they are seeing people who have come energy the comps are higher than normal, up 20% in terms of what they are buying to restock at this point, but they are just not willing to say what impact. they are standing by their outlook for fiscal year 2013. at this point, they don't think it's going to have any long-term impact on their fiscal first quarter. >> bertha, thank you for that market flash. ceos across america are fed

one fiscal cliff gridlock and taking a stand. up next, we will hear from one of them, tenneco ceo gregg cheryl is up in a must-see interview, up next.

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welcome to the world leader in derivatives. welcome to superderivatives.

welcome back to "fast money," live at the nasdaq market site in times square. looking it he biggest movers after the election, hit on the hmo names and hospital names as well, humana, wellpoint, aetna, the biggest movers today, the flip side, hospital store, tenet health care, hca, tallied big gapes helped along by goldman sachs on hca. the thinking parents before couldn't pay will now be able to not pay but it will be covered. >> a lot more coverage out of this. this is where you want to be this has been a telegraphed strayed. as we said before, leading up into the obama re-election, people were unsure. backed off a bit when romney came on a little bit in october but then we start to see the resur gems gence of strength he.

i would be locking in sales, think way too long in the tooth for the hospitals. >> talked about tenet health earlier, stock up 10% today. talked about it when they reversed split, scared a lot of people away this is one name that might buck that trend and it has, but you get thc up 10% on four, five times normal volume, fortunate enough to be in it, absolutely no reason you shouldn't be taking profits. >> also look at the names to be cautious on, xlv, heavy in pharma, they have a patent cliff coming up, big dividends that people don't necessarily want anymore and done very well this year, susceptible to selling. >> overusable of the word cliff. cliff is for everything now. >> everything is cliff. >> patent cliff. mike khouw out there, the positions of the hospital stocks or hmo stocks what are you seeing? >> interesting here, the managed care names in particular, up yesterday, down today but united health is actually little bit lower than it was even over the course of the last couple of

months this is a company, on a valuation basis is fairly cheap, well positioned, i think they understood what was coming and this pull back might represent a decent opportunity. cheryl school nick, our analyst on it likes the name. people long at unh a folks buy on the pum back here. >> the market took a turn in the other direction as fears of a fiscal cliff top to loom and it's not just investors worried about the december 31st deadline, a number of top ceos have been voicing their concerns about the cliff and deficit as part of the fix the debt campaign. >> a great graph inc. >> look at that cliff hanger. whoa. careful. >> which way will it go? >> good movie with sylvester stallone. >> gregg sharele is chairman and ceo of tenneco. he joins us from chicago. good to speak with you. >> good afternoon michelle. >> it's melissa, gregg that's okay. >> melissa, i am sorry. >> no problem. in terms of what you are hoping to accomplish with cos, why band together, why now and who are you talking to at this point? >> well, i think the reason why

now is clearly, i think, coming into short focus is the fiscal cliff issues we have. some of us have been working on this now for the last couple of years through the organization that's become the fix the debt organization, working with certain what i believe are true statesmen in the senate, in congress, who truly want to see this thing fixed. for me and a lot of business people, the key fundamental underlier of economic activity or business activity is confidence. we see no alternative but to approach that through a comp prom my we certainly have a divided government and we just simply believe through that compromise, given we do it

right, given we do it thoughtfully, get pro-growth tax reform in there reduction in spending, that we can really unleash the economic might of the united states again. >> in your view, is achieving your goals been made more difficult or easier given the change in makeup now in congress, in terms of democrats gaining couple of senate seats, the republicans maintaining control of the house and the president being reelected? >> you know, it's been difficult up to now, difficult enough up to now, i'm not so sure that a whole lot has really changed regarding the degree of difficulty. look no matter who had won this election, you see the popular vote split pretty much begin in the near 50% range. it has about that way for some time. we are simply a diverse democracy, we are going to have differences of opinion. we have two parties the only way to govern is sit down, find common ground, give and take and come up with a compromise that puts us on a sustainable fiscal

path. >> gregg, it is steve grasso. how hopeful are you? you are entrench there had, how hopeful are you that we can start this dialogue, got to start post thanksgiving and we have to come one some type of a deal so the cbo can grade it so we can get it passed before christmas. >> yeah. >> is that feasible? >> that's very, very good question. i'm not about to stake my own reputation on how this thing is going to go, i can tell you that. all i know, it is important enough there are people in congress, in the senate that are determined to give this thing, you know, the try that it deserves. i think we are going to have to come up with some sort of a temporary situation to fix the immediate issues of the fiscal cliff so that we don't go over it. hopefully with some deadline in place and i know we have had deadlines i in place before, to come up with a more comprehensive fiscal reform and we believe it should be along the lines of simpson boles, we have had a pretty good plan together for a couple of years. the details need to be worked

out o the devil is always in the details that is what we pay these guys to do, we feel like it's a great outline of a solution that could be, you know, put us on that sustainable fiscal path long term, granted between now and christmas, we are going to have to come one some shorter term compromises that simply permit us from going over this fiscal cliff. >> gregg, a pleasure to is speak with you. thanks for your time. >> thank you. >> the ceo of ten nah co-. not sure if there's a true trade off the fiscal cliff but mike khouw, in terms of volatility, i know that the curve, you look at the futures curve has been steeper, volatility more expensive as you go further out? >> really interesting, because actually today, the options came in on balance that reflected the fact that now that the election has passed, the concern about volatility rue now is lower but longer term, you are absolutely right. the expectation for volatility going forward the next six months is substantially higher than it was only a couple of weeks ago.

>> all right. just one week after the hurricane sandy, the northeast is bracing for another big storm. we have got all the latest on this nor'easter's path apparently named athena, right after this. stay tuned. up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.

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residents in the northeast still recovering from the fallout of hurricane sandy, but another big storm is causing power outages once again. meteorologist todd gross is monitoring nor'easter athena's path and he joins us with the latest. todd what is the latest? >> indeed i am. this is becoming a very, very big deal. let me show you why. basically, it is this area right in through here that is around from stamford, connecticut, down to atlantic city that is getting the belt, the heaviest belt of precipitation right now from this storm. but let me show the problem. it's the snow in the trees and we have some video that we can actually show of you how the snow clings to the branches and because it does so, let me clear that right there, it actually brings down some of the tree limbs. so, we are going took a no power situation at this hour in many of the same exact spots that lost power from sandy. let's, in fact, look at a list

of all the i am testimotems we with with this amazing summer nor'easter. first of all, wet snow damaging the trees, numerous power outages, new one, four to eight inches of snow in the interior, connecticut straight down to new jersey, big winds and waves, cape cod, the islands as well. we will be watching this as storm unfolds. >> this the first time we have been naming nor'easters? i don't remember calling a nor'easter any name prior? >> just start. >> you are correct. and it is being spearheaded by the weather channel. the weather channel has taken certain parameters and this storm does fit all those parameters so this is the first winter storm with a name. >> atheme nah is born. todd, thank you for clarifying that. appreciate it. >> you bet. >> todd gross. let's switch gears to energy, exxonmobil fall morgue than 3% today amidst the market selloff. will it continue to fall? what do you see in the options pits, mike khouw? >> they could fall further. the most active options the

november 87 1/2 puts those ex-smir a week from this friday. those look like they were trading for about 65 cents but the last trades were a little bit higher, bets that the stock will be lower in just over a week. >> all right. more "options action" every friday, of course, 5:00 eastern here on cnbc. tensions in europe reach a boiling point against once again today. up next, women bring you the latest what is behind the trouble this time and give you the way to trade it. stick around. [ male announcer ] the markets keep moving. make sure the news keeps coming with thinkorswim by td ameritrade. use the news links breaking stories with possible breakout stocks, options with potential opportunity, futures and forex with in-depth analysis. it's an all-you-can-eat buffet for all things trading. thinkorswim by td ameritrade. it doesn't just deliver news. it's making news. trade commission free for 60 days, plus get up to $600 when you open an account.

welcome back to "fast money." we are live at a very slushy times square. nasdaq market site f you are driving now listening to us on the radio please be careful. slow it down. no rush out there. the euro today fall fog a two-month low versus a dollar after ecb president mario draghi said the crisis is affecting germany and protests in greece are intensifying as the government tries there to push through an austerity package needed to secure an injection of aid. welcome todd borden, aspen trading group. various push pulls, had the u.s. election, all these developments

out of europe. >> yeah. it was really pretty interesting trade this morning. the s & p took a big dive, down on 300 points. you didn't see the usual reaction in the market you expect. expect to see the dollar on a tear. you did not see it as you said, melissa, face serious fiscal issues coming up the end of the year. last night's election, the house and senate still on opposite sides, a possibility for bipartisan disagree respect. i think that spells trouble for the fiscal cliff and the budget deem. so i think there is a pro pensity to want to sell the dollar. flip side, vocal in greece now, a 13 billion austerity measure, part one. part two, sunday night, i think they are going to be voting on a 2013 budget projection. both of those are approved, greece the next aid, i think bullish for the your row, all together, i want to go long the eurodollar into this selloff. >> looking for it to pull back a touch? walk us through the levels,

todd. >> like guy said, i was one of the guys flushing it through, guy said he wants to buy a little bit of a pull back into the s & p. same thing with the your row, 137, the s & p equates to 127 in the eurodollar that is the area i will get in to buy, top out at 126 and take profit on a bounce up to 130. >> todd, thanks so much for that. see you on friday for "money in motion." meantime, election uncertainty now over in the markets but the fiscal cliff looms large, could be major changes, as we mentioned to capital gains tax flaws 20122013, with we were macky in a position to remain fed chairman, it may stay low. there are a couple of knack doors. as you know, companies have built up cash on their balance sheets, cash on the balance sheets has increased 55% since 2007. also, the fourth quarter is seasonally a very strong period for these special sort of payouts.

>> i'm long win, staying long win, payable november 20th, record day was 11/5. the other story interesting, las vegas and striker, not sure if striker will be paying it out because they had an acquisition. so that confuses the issue a little bit, but keep an eye on las vegas, the same space. >> striker, striker, you're too low, ted. >> contribute to this conversation. no i agree. i like general dynamics, fourth quarter, they've their cap x plans in place. who rides in air force one,

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as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students. let's solve this. time for the final trade, mike khouw? >> caterpillar. >> tireless tim? >> not dead [ inaudible ]. >> help me quando. csx on this dip.